Electrum introduction
This insight will make bitcoin holders happy : we will talk about Electrum wallet, the software developed exclusively for THE cryptocurrency.
Wallets are indispensable tools for those who own and trade cryptocurrencies. Many of them support different blockchains and/or are tied to a centralized exchange. This makes them less than perfect for certain needs.
Electrum is a bitcoin wallet and supports only this crypto. It makes it possible to store, send and receive the coin carefree and reliably.
In the next few paragraphs we will study Electrum in detail, starting with installation and ending with discovering its secondary functionalities.
Before we begin, however, we will spend a few general lines on what a crypto wallet is. We advise the less experienced to learn more about it in our dedicated article (link in the following paragraph).
Index
What is a crypto wallet?
The crypto wallet is the virtual place where we can put the private keys of our cryptocurrencies and be the only responsible and owner of them. Imagine it as the traditional banknote wallet but designed for cryptocurrencies.
There are two types of wallets: custodial and noncustodial.
With the first we delegate ownership of our currencies to the exchange, although of course we can use them.
In contrast, through the second we retain ownership of our cryptos as well as responsibility for the private keys.
Understanding the difference between these two wallets is essential to be clear about the rights and obligations we will have over our digital currencies.
After this brief introduction we can go on and devote ourselves entirely to Electrum bitcoin wallet.
What is Electrum wallet?
Electrum is a noncustodial wallet developed exclusively for bitcoin. This means that Ethereum and other cryptocurrencies will require different dedicated software such as MetaMask.
Electrum stands out for its simplicity, which results in a basic, old-fashioned interface. What seems like a flaw, however, is a virtue: this crypto wallet is meant to be as light and fast as possible; we anticipate that intent has been achieved. The downside lies in the somewhat less intuitive user experience, but nothing particularly problematic.
The operation of Electrum wallet is based on high-performance servers. The software establishes a connection with them and the user can then send and receive bitcoins without any worries. The connection is almost immediate and the waits are attributable solely to the blockchain itself.
As for security, one can be quite comfortable.
First of all, Electrum bitcoin wallet is noncustodial. The user retains ownership of the private keys and, of course, ownership of the deposited BTC as well.
Second, the seed phrase provided is 12 elements and offers a high degree of entropy. Translated: it is impossible for a brute-force attack to get the words that make up the phrase, as well as their order, right.
Finally, Electrum wallet does not send private keys to the servers. This point is definitely positive and shields users from potential nasty surprises. The project FAQ itself, to the question “Does Electrum trusts servers ‘ answers ’In short, not really ‘ (’Does Electrum trust servers?”; “In short, not really”).
Electrum is available for different environments and operating systems. Without going into the more technical spheres, in the next paragraphs we will find out how to install it on the two main environments: Windows and macOS.
Before moving on to installing the software, let’s see who should turn to this crypto wallet.
The perfect profile is probably the bitcoin holder who does not hold other cryptocurrencies, or does not wish to store them in the same place as BTC. In truth, however, there is no rule and anyone can use Electrum: it is well built, secure, and eliminates the confusion that comes from supporting multiple currencies and blockchains.
Electrum wallet on Windows setup
Let’s find out the steps required to install Electrum wallet on Windows PC.
Let’s access the official website, electrum.org. Let’s look for the Download item in the menu located at the top, click it and enter the dedicated page.
The words Windows Installer are what we are looking for: let’s click on it to download the installation software. We wait for the download to finish and then start the procedure.
The steps are very simple and a confirmation is usually required on our part. The only item we might want to vary is the wallet installation folder on our computer, assuming we have preferences for it.
When the installation is complete, the real “work” begins, that is, the configuration of Electrum before we can actually use it. No fear: again, there are no complexities to report.
Going step by step, we start Electrum wallet.
First we will be asked how the software should connect to the servers: barring any special requirements, let’s leave it as is and continue.
At this point we will see that Electrum will be ready to create a wallet named default_wallet. By clicking on it we will be free to change it. Having finished any changes, let’s move on.
It is time to choose which type of crypto wallet we are configuring. There are four options available:
- Standard: the preset item, to be left if you are not an expert or have no specific needs.
- Two-factor authentication: uses a remote server from the TrustedCoin service to append a double signature to each transaction. 2FA increases the level of security but is not essential if we properly store private keys and seed phrase.
- Multi-signature wallet : perfect option for teams that need to create a multisig wallet. Unlike a regular wallet, in this case each transaction requires multiple signatures to be confirmed. Often criticized for fears of rug pull, this practice is common in several crypto and DeFi projects.
- Hardware device: allows you to pair your hardware wallet with Electrum. Of these, we recommend Trezor and Ledger. If you do not own one and want one, purchase a Ledger on the official store.
If we had chosen the standard option we will be ready to devote ourselves to the seed phrase. Electrum wallet will ask us whether to create a new one, import it, use a master key or a hardware wallet.
Most users will have to create a new one: clicking will generate it and this is where we will have to resort to pen and paper, writing it down carefully. Moving on, a check will be made where we will need to report what we have just jotted down.
Utmost care and attention when it comes to seed phrase: in case we lose access to the wallet or want to use it on another device, only it will allow us to recover what we deposited. Otherwise there would be no way to proceed.
Never share the seed phrase: whoever owns it has the doors open to the funds available on that particular crypto wallet. To be clear, anyone could access the cryptocurrencies on the wallet paired with the phrase visible in the picture above (sorry, it’s empty 😀 ).
Going back to the procedure, after taking care of the seed phrase we will be able to choose a password to access the wallet from the device we are working on.
While less important than the “colleague” in the previous step, the password should also be thought of with maximum security in mind. If an attacker had access to the computer, a trivial password such as “password1” would make life very easy for him. We need to think constantly in a preventive way, better to overdo it than to be deficient.
Very well: the process is over! Let us take a look at the required procedure on macOS and then move on to the functionality of Electrum bitcoin wallet.
Electrum wallet installation on macOS
Before continuing, a quick look regarding installation on Apple computers.
From the Download section of the Electrum wallet site , we select Executable for macOS. When the download is complete, a window will appear in which we will find the Electrum icon: let’s click it.
Having arrived at this point, the software is already operational and will only need to be configured by following the steps seen above. Specifically, it will be possible to create a new wallet, or import an existing one.
On the last step, a note to remember: when a new wallet is created, Electrum generates an attached file. Let’s keep track of where it is located and maybe even copy it elsewhere just in case. This answer in Electrum’s official FAQ explains where the files are placed.
Send bitcoins with Electrum
Sending BTC via Electrum takes only a few minutes, promise!
From the wallet application , we select the Send tab .
At this point all that remains is to fill in the few fields present, not unlike those already encountered using other crypto wallets.
In Pay to we will have to enter the recipient’s address. We can copy and paste it, or scan a QR Code using our computer’s webcam. In case we have entered contacts in the address book, it will be enough to type the name of the same to automatically import thebitcoin address.
In Description you can enter a note, a bit like the reason for the payment in the classic bank transfer.
Finally Quantity, where you must indicate the exact amount to be sent.
As always, check that the data is correct before clicking the Pay button : each transaction is irreversible. Cases where cryptocurrencies ended up in the wrong place are unfortunately a classic.
The transaction can also be saved and started at a later time.
Returning to the address book, from the menu on the top bar, click on View and Show Contacts: a new tab named Contacts will instantly appear on the Electrum wallet screen . From here, by right-clicking we can add a new call sign, a perfect solution for addresses we are going to interact with frequently. By doing so we will save time and avoid compilation errors.
Receive bitcoins on Electrum
Electrum bitcoin wallet has as many as twenty addresses used for receiving cryptocurrencies.
To receive BTC, therefore, it is enough to send one of these addresses to the sender so that he can create the transaction. Nothing else is needed.
The address takes the form of an alphanumeric string. An example might be bc1qy99m0sf7wexjndnh8rj86t226v6tgn6ghq2vm5.
To view the addresses matched to our Electrum wallet we will need to click on the View button located at the top of the software. From the drop-down menu that will open, we will then click on Show addresses. At this point we will see the Addresses tab appear , in which we will find the entire list (see photo at the end of the paragraph).
From the Receive tab you can instead set up an incoming transaction complete with QR Code and amount. Sharing it will make it easier for those who need to send us the amount. This feature is convenient especially for buying and selling but can be used by anyone who finds it useful.
Other features of the Electrum bitcoin wallet
Let us now turn to a roundup of the Electrum bitcoin wallet’s menu.
Through File we can save backups, import other wallets or create new ones. Obviously we will have to provide passwords and/or seed phrase, as well as repeat the new wallet setup procedure seen earlier.
Wallets is a very important section. First, by clicking on Password we will be able to set a new one (providing the old one to proceed).
Under Seed we will instead get to view the seed phrase. Again we will need to enter the password before proceeding.
Clicking on Private Keys and Export will export all our private keys in CSV or JSON format. However, this function will probably never be used by the classic user.
A variety of items are then available through which to import or export files.
The View drop-down menu we have already encountered in the previous paragraphs. Through it we add or remove tabs from the main screen of Electrum wallet.
Under Tools, on the other hand, we have access to a more technical section, which is also usually unnecessary for those who just send and receive bitcoin.
Of note is Preferences , which allows us to customize the interface under Appearance, as well as vary the base unit (BTC by default) and set transactions. We repeat: the starting settings are already perfect as is, handle only after carefully reading the official documentation.
At this point someone might say “okay, where do I find documents, FAQs and information?”; The last item in the menu bar, Help, is the right place. From here you can also report bugs as well as make a donation to the server.
Let’s move from the menu and go to the Channels tab . Through it we can start a new channel on Lighting Network, the powerful layer-2 of bitcoin.
To avoid problems, we recommend reading our in-depth discussion of Lightning Network to understand what this is all about; after that, more specific documents can be studied before actively transacting.
The History tab reports all wallet-related transactions, whether incoming or outgoing.
Final notes: some features can also be reached from the icons located in the bottom right corner of the wallet. A green or red dot is also visible from here: in the first case it means that we are correctly connected to the servers; in the second case we will be offline.
Electrum: basic but safe
We’ve figured it out by now: Electrum is not a wallet that makes design its workhorse. In fact, the interface will appeal to those nostalgic for Windows 2000 — assuming there are any!
On the other hand, however, Electrum proves to be reliable and quite easy to use. Support for bitcoin alone puts it in a distinct user group, eliminating everything else.
Since it does not have to interact with different blockchains from each other, this wallet is therefore well built and optimized.
Electrum is a perfect tool for those looking for a crypto wallet in which to store their BTC without having exchanges, other networks or too many frills in the way.
On the other hand, those looking for a less spartan but still reliable and simple alternative might take a look at Exodus wallet.
Have you already used Electrum bitcoin wallet? If yes, did you find it comfortable? We look forward to seeing you on our social channels for feedback.
